The 27-year-old agreed a deal to move to the Chiefs, who are competing in the Heineken Cup for the first time this season, in the summer.
But Votu’s switch to Sandy Park has been held up, with the winger yet to get a tier five licence which allows sportsmen to play in the UK for up to 12 months.
Baxter admitted Exeter have considered pulling the plug on the deal, but the Chiefs head coach believes Votu can become a key player for the club if granted the necessary visa.
“It’s not worked out fantastically well and the visa application process hasn’t been great for us,” Baxter told BBC South West.
“It’s still very much there, but until the licence application comes through we can’t do too much more.”
He added: “It’s still a goer as long as we can get through a very complicated and long-winded license application.
“I won’t lie, the plan was to have Watisoni Votu here for the start of the season to give us an extra winger while Gonzalo Camacho wasn’t here.
“But we’re looking at him as a guy who is very much a development prospect anyhow.
“So do we go through with it and try and get him over here and look at that potential and try to develop that potential or do we let it go?
“I think the value is on us looking at him and trying to develop his potential.”
MORE: The latest football news
MORE: The latest tennis news
BIOGRAPHY: Ethan Hazard
BIOGRAPHY: Daniel Sturridge